jayson8245 jayson8245

14-04-2020
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An equipment cost $80,000 initially. The market value has been declining at the rate of $15,000 yearly. The O & M costs in year 1 were $10,000 and have been increasing by $2,000 from year 2.
Determine the economic life of this equipment for a MARR of 10 %.
(A) 2 years
(B) 1 Year
(C) 4 Years
(D) 5 Years

Respuesta :

tanseershar tanseershar

19-04-2020

Answer:

D.5 years

Explanation:

Annual Depreciation = Cost/Useful life

$15,000=$80,000/Useful life

Useful Life=$80,000/$15,000

Useful Life=5.33

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